ZTE reaches settlement with US authorities over export violation charges

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He added that the administrative departments of the Chinese government will continue to follow up whether the Chinese companies are treated fairly. Chinese telecom equipment maker ZTE Corp. said on Tuesday that it has reached settlements with US authorities over US export controls and sanctions charges.

The Chinese company has agreed to pay a criminal and civil penalty of about 892 million US dollars and an additional penalty of 300 million dollars, which will be suspended during a seven-year probationary period to deter future violations, ZTE said in a statement posted on its website.

In order to improve its export control compliance, ZTE has appointed a new CEO and made major changes to the senior management team, according to the statement. It also established a new compliance committee and strengthened export control compliance training and processes.

The settlement was reached with the US Commerce Department, the Justice Department and the Treasury Department, the US Commerce Department said in a statement on Tuesday.

US Commerce Secretary Wilbur Ross holds a news conference at the Department of Commerce in Washington, US, March 7, 2017. /Reuters Photo

Chinese Foreign Minister Wang Yi made a comment over the settlement at a press conference on the sidelines of the ongoing Two Sessions in Beijing, saying that China consistently opposes to foreign government’s unilateral sanction against the Chinese corporation, and also requires the Chinese firms overseas to operate abiding by the local laws.‍

He added that the administrative departments of the Chinese government will continue to follow up whether the Chinese companies are treated fairly.

Chinese Foreign Minister Wang Yi attends a press conference on the sidelines of China's Two Sessions in Beijing. /Xinhua Photo

The US authorities claimed that ZTE and its affiliated entities illegally shipped telecommunications equipment to certain countries in violation of US regulations.

The Commerce Department in March 2016 added ZTE to the Entity List under the Export Administration Regulations. This move made it difficult for ZTE to acquire US products such as chips and software.

Following the settlements, the Bureau of Industry and Security under the Commerce Department will recommend that ZTE be removed from the Entity List, said ZTE in its Tuesday statement.

People stand at ZTE's booth during the Mobile World Congress in Barcelona, Spain, February 27, 2017. /CFP Photo

ZTE has strong partnerships with many US suppliers that support nearly 130,000 high-tech jobs, and it anticipates continued growth and business expansion over the next several years from 5G technologies, said Zhao Xianming, chairman and CEO of ZTE, in the statement.

So far, ZTE has 14 offices and six research centers in the United States, with 80 percent of the total 350 staff being Americans.

ZTE currently holds about 7 percent of the US smartphone market, the fourth largest after Apple, Samsung and LG.

(Source: Xinhua)